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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (26882)	5/22/2007 1:13:54 AM
From: Paul Senior	Respond to of 78748

RIG. It's possible, I have read, that it isn't going to be about the supply of rigs...companies are building them sure... it is about the skill shortage. The people who manage and operate these things are in high demand/short supply and apparently have skill sets and experience that are important and necessary and which are not easily learned or gained. RIG having these crews, may have an advantage over smaller companies/new entrants to the business. I'm fairly assured that through a combination of being in an attractive sector (good backlogs), increasing earnings, and increasing low p/e, RIG now at about $97, will see $125 or better next year. (Although...in actuality, my record of success with "fairly assured" isn't that great. Sigh) If it were me in your situation, Madharry, I would not have the emotional strength or commitment to this stock whereby I could overlook and overcome my decision to forego buying at 1/5 the price to now reverse and come in so much higher at this point. For me, in this situation, I'd just want to, and would likely, pass on the stock and move on.

To: Madharry who wrote (26882)	5/22/2007 1:15:53 AM
From: Grommit	Read Replies (1) \| Respond to of 78748

RIG. I found this link to be good. Take a look at a couple of the presentations here. Yeah, it's old news, but simmons is saying that he would be an investor in oil services and small E&P companies now. see april 26 presentation. I think Simmons also mentions that deepwater is going to be tight for rigs for a long time. So RIG and DO fit that bill. Anyway this discussion would be probable be better on a drilling thread. They know more about it than I do. simmonsco-intl.com You say the (drilling) party has to end, but I think the cheap energy party will end. The need for "furious drilling" (simmon's words on page 52) will continue. There are a lot of drilling and service companies with decently low PEs.